Keppel Offshore & Marine said it has entered into a deal with Pavilion Energy and Indonesia's state-owned electricity provider PT Perusahaan Listrik Negara to distribute liquefied natural gas (LNG) to remote areas in west Indonesia.
The agreement, which was signed at the Singapore-Indonesia Leaders' Retreat in Singapore, will not have any material impact on the net tangible assets and earnings per share of Keppel Corp for the financial year ending December 31.
The agreement follows the discussion between the Indonesia and Singapore governments regarding bilateral energy cooperation during the Singapore-Indonesia Leaders' Retreat held in Semarang last year.
A joint feasibility study was subsequently carried out, which demonstrated the cost savings and mutual benefits that can arise from collaboration in the small-scale LNG value chain, Keppel said in a statement on Thursday.
"With a comprehensive suite of solutions for every stage of the gas value chain ... we are able to provide cost effective, end-to-end solutions for our customers," said Chris Ong, chief executive officer of Keppel Offshore & Marine.
The agreement intends to leverage on the combined expertise of the companies in the smallscale LNG value chain to distribute LNG in an economic manner to remote areas in West Indonesia.
Shares in Keppel Corp were down 0.2 percent to S$6.29 on the Singapore Exchange. The stock has gained 9 percent so far this year.
